Advanced Micro Devices (NASDAQ:AMD) was one of the star stock market performers of 2019, posting gains of over 150% on the year. Up until the point where the markets crashed, AMD stock was going gangbusters in 2020 as well. It closed at an all-time record high of $58.90 on Feb. 19, for a 28% gain in just the first two months of the year.
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While the novel coronavirus pandemic has hit stocks hard, AMD is well-positioned to bounce back. All the people working from home and playing online video games is putting pressure on cloud computing data centers to add servers. That’s good news for AMD’s EPYC enterprise server chips.
Working (and Gaming) From Home Is Good News for AMD
Under the social distancing required because of COVID-19, companies have increasingly shifted employees to working from home, where possible. At the same time, people starved for entertainment — and millions of kids stuck at home because of school closings — have led to a dramatic increase in online gaming. And everyone is watching a lot more streaming video.
Microsoft (NASDAQ:MSFT) reported it has seen a 775% surge in in demand for its cloud services. Netflix (NASDAQ:NFLX) and other video streaming companies are cutting the quality of their streams because of the load they are putting on internet infrastructure.